DIFA Industry Training

The Debtor and Invoice Finance Association of Australia and New Zealand (Inc) conducts an Industry Training program on behalf of its members. The course, entitled ‘Factoring and Discounting in Australia’, was written by DIFA members (see course outline below) and is delivered through the national training network of the Australian Institute for Credit Management (AICM).

The course is available as a two-day intensive face-to-face program, or can be completed online.  It can be completed as a stand alone course, or can form part of the Diploma of Financial Services provided by AICM. For more information about factoring and discounting course and the Diploma program, please contact AICM on (02) 9906 4563 or visit www.aicm.com.au

Factoring and Discounting in Australia

Course Outline

Section 1: Introduction to factoring and discounting 
1.1    What is factoring/discounting?
1.2    Assignment of debt
1.3    Benefits over lending against receivables
1.4    Different characteristics of discounting as compared to factoring
1.5    Recourse and non recourse
1.6    Purchase price and balance of purchase price

Section 2: History of factoring and discounting 
2.1    The ancient history
2.2    History of modern factoring
2.3    Discounting
2.4    Factoring and discounting in Australia
2.5    Growth in factoring
2.6    Growth in discounting
2.7    Summary

Section 3: The benefits of factoring and discounting 
3.1    Enhanced cash flow enabling growth
3.2    Modelling of potential cash flow benefit
3.3    Outsourced collection activity (factoring only)
3.4    Prompt settlement discount

Section 4: How a facility operates in practice 
4.1    Facility approval – factoring/discounting
4.2    Typical security documents and their purpose
4.3    Key variables governing a factoring and discounting relationship
4.4    Verification of debts at take on
4.5    Assessment of credit worthiness
4.6    Determining what should be approved for funding purposes
4.7    Notification of assignment of debt
4.8    Calculation of payment to a client and recovery of fees
4.9    Invoice batches / due diligence / ongoing debtor assessment
4.10  Payment of retention
4.11  Typical client reports
4.12  Collection activity (relevant for factoring only)

Section 5Legal aspects of assignment of debts 
5.1    Types of assignment of debt
5.2    Notice of assignment
5.3    Assignment of related rights
5.4    Concept of equities
5.5    Issues affecting assignability and problem debts
5.6    Legislative requirements

Section 6: Risk aspects of factoring and discounting and how they can be controlled
6.1    Real estate security
6.2    Debt assignment
6.3    Non-delivery of goods and services, and verification of debt
6.4    Fictitious debtors and address/phone number confirmation
6.5    Concentration and setting limits by dollar value and percentage
6.6    Collusion
6.7    Misbanking
6.8    Common debtor/creditor

Course Registration

Please contact AICM for details of upcoming and online courses.
Phone: (02) 99064563 or visit www.aicm.com.au

DIFA Student Award

Each year DIFA selects the outstanding student completing the ‘Factoring and Discounting in Australia’ course as the DIFA Student of the Year.

This selection is based on both course work and assessment tasks. This prestigious award is made at the DIFA’s Annual Luncheon, which is attended by leaders of the factoring and discounting industry in Australia.

For news on recent recipients of the award click here.